New Construction

This loan is used to build on raw land or replace an existing house with a new one. The dynamics are similar to the fix and flip loan except that the term is typically a year. New construction projects can be different from rehabs in that planning process can be longer. From obtaining surveys, to architectural plans, to site review and permitting; it is common to take two or three months to get to construction start. For this reason, some people like to borrow just enough money to complete the purchase, then borrow funds later for the construction.